Market Matters Blog

MINNEAPOLIS (DTN) -- The DTN price for domestic distillers dried grains (DDG) from 33 locations reporting for the week ended Jan. 4 was mixed but 6 cents weaker on average at $195 per ton versus one week ago. DDG prices moved lower to begin the new year, due in part to the corn and soymeal markets fading. Soybean meal was down 9 cents versus one week ago and the DTN National Corn Index was down 5 cents versus one week ago.

The Energy Information Administration reported overall ethanol production in the United States averaged 1.049 million barrels per day (bpd) in the week ended Dec. 29, down 58,000 bpd week-on-week and 205,000 bpd, or 19.5%, higher than in the same week last year. Four-week average output at 1.075 million bpd was 101,000 bpd above the same four weeks in 2022. Midwest ethanol production averaged 995,000 bpd, down 52,000 bpd week-on-week and 201,000 bpd, or 20.2%, higher than in the same week last year. Four-week average output at 1.016 million bpd was 97,000 bpd above the same four weeks in 2022.

Based on the average of prices collected by DTN, the value of DDG relative to corn for the week ended Jan. 4 was 1.17%. The value of DDG relative to soybean meal was 51.15 and the cost per unit of protein for DDG was $7.22 compared to the cost per unit of protein for soybean meal at $8.03.

U.S. Grains noted, "The most recent monthly Grain Crushing report from USDA featured 505 million bushels of corn used for ethanol in November 2023, up 1% ... year-over-year. DDGS production totaled 1.80 million tons in November 2023, also up 1%, year-over-year. DWG production totaled 1.37 million tons, down 6%, year-over-year."

Note: All prices subject to change/confirmation.

Mary Kennedy can be reached at mary.kennedy@dtn.com

Follow her on X, formerly known as Twitter, @MaryCKenn

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